3 Disruptive Innovators Introduction At this point in time, any examination of the classic Hollywood model of film distribution seems to be sorrowfully out of date. Ostensibly it might appear unquestionable that the distribution sector of the global film industry has been revolutionised in recent years. This surface image would seem to suggest that this transformation has ushered in an era of plenty, where a whole host of films and TV shows (not to mention books, computer games, web series and so on) are available within the blink of an eye. Furthermore, if we count the developing informal (and often illegal) channels of online distribution facilitated by the growth of the Internet, then the last 10–15 years has witnessed an explosion in the availability of films and TV programmes for audiences. At least, this is how it seems, and arguably there is some truth in this assessment of the current media distribution environment. However, I would argue that this veritable smörgåsbord of content is not universally available, nor is it presented in an unmediated form where audiences are free to pick and choose the content that interests them. As Finola Kerrigan has suggested, ‘on demand distribution is not the free for all panacea that some claim, as the structural impediments of the global film industry still prevail to a certain extent’ (2013). It is important to acknowledge that our film-viewing decisions are funnelled, curated and directed by these new mechanisms of online dis- tribution. As much as our film choice was once limited by the titles available in the high street video rental store or through our cable TV provider, online on-demand options are still shaped by the con- tracts and marketing arrangements discussed within Chapter 1 of this book. Furthermore, new distribution platforms are unevenly distributed 56 Disruptive Innovators 57 across the globe and, where they are available, they are subject to the vagaries of access to high-speed Internet connections, not to mention reliable access to electricity. Such a context is convincingly summed up by Knight and Thomas when they suggest that, ‘despite the perceived benefits of the “digital revolution” for moving image distribution – and there certainly are very clear benefits – many of the issues governing the diversity of the film culture that we as audiences experience remain the same’ (2012, p. 274). To take one obvious example, many of the key players within on- demand distribution only operate in a few key territories.1 Furthermore, Internet access itself is unevenly distributed across the globe. To illus- trate this point, according to data available from the World Bank (2015), the East African country of Eritrea has the lowest level of Internet access, with only 0.9 people per 100 of the population able to access the world- wide web in 2013. This figure rises across the African continent with access in South Africa reaching 48.9 people per 100 of the population. However, such a figure is still rather low and, looking at the so-called BRIC countries (Brazil, Russia, India and China), nations specifically identified as undergoing advanced economic development at present, we can see that Internet access here is also uneven. Russia leads the pack with a figure of 61.4 per 100, while India exists at the other end of the spectrum with only 15.1 people out of 100 having access to the Inter- net. China and Brazil reside in the middle of the table with 45.8 and 51.6 respectively. At the top of the scale, the Scandinavian countries all boast access for around 95% of their population and Iceland has the highest figure with 96.5 people per 100 able to access the Internet. How- ever, in the UK the number is only 89.8 and the US is even lower with 84.2. So, even if online on-demand companies offer their products in acertainterritory,thevariationsinInternetaccesswithinthatcountry may mean that such services are still only accessible to a proportion of the population. In addition, the costs required for an Internet connec- tion and the premiums levied to access on-demand services may also prevent potential audience members from experiencing such content. As such, the idea that we are experiencing a universal era of plenty in terms of film and TV distribution is undoubtedly a fiction. While never forgetting this global context, it is still true that in many parts of the world things have indisputably changed. I am fortunate enough to have had access to the Internet and DVDs from my late teens but, even in such times, cinephilia was still a troublesome pur- suit. I spent large portions of my time perusing the shelves of the local Blockbuster video rental store frustrated by the fact that I seemed to 58 Film Distribution in the Digital Age have viewed most of the films on offer multiple times. To counteract this lack of availability, I stayed up late into the night to record films pro- grammed in the graveyard shift on the four terrestrial channels that were available in the UK through the 1990s. I amassed an extensive collec- tion of poor-quality long-play VHS tapes that hosted two or three films each. This collection then required a complicated cataloguing system so I could identify (with relative ease) which VHS housed which film. This collection has long since been retired, as DVDs, and now Blu-rays, have replaced the format of my youth. Furthermore, these copies were played on so many occasions that they became almost unwatchable towards the end of their lives. Nonetheless, I remember them fondly and one or two still exist for sentimental reasons and/or to allow me access to films that I have not yet been able to locate through other means. So, with this context still fresh in the minds of many, it might seem short-sighted to suggest that the introduction of Hulu, iTunes, Netflix, Amazon Instant and the like have not revolutionised film viewing in countries where such services (and reliable Internet connections) are readily available. Indeed, things have undoubtedly changed dramati- cally over the last 15–20 years (if they had not, there would be very little point in writing this book). However, I would suggest that this change does not amount to a revolution: a term that would imply that an alter- native system has replaced the incumbent one. While Iordanova claims that ‘cinema is in the process of moving on-line’ (2012, p. 1), such phras- ing, although acknowledging that such a process is still underway, also implies an inevitability that I would dispute. This book does not pretend to claim that the experience of film spec- tatorship has not changed dramatically in recent years but, if we look back across the history of cinema, then it is clear that the methods and modes of consuming films have been forever changing and devel- oping. To take one example, the architecture of cinemas has changed dramatically over the years, so much so that the majority of cinemas we attend now bear little resemblance to the picture palaces that were popular in the early part of the 20th century. Furthermore, the con- ventions of cinema viewing in the UK require that one sits in the dark in silent reverence while the film is screened, but this practice is very far removed from the way films were watched in Nickelodeons and is certainly not representative of the many ways that films are now expe- rienced in public settings the world over. So, when concerns over the ‘death of cinema’ are raised, they seldom take into account the fact that cinemas and practices of film consumption have always been in a Disruptive Innovators 59 perpetual process of change and adaptation. We must remind ourselves that to watch films collectively on a large screen is a convention and not a necessity of the medium. Furthermore, just because alternative film-viewing practices present themselves, it does not mean that audi- ences will all simultaneously reject decades of tradition surrounding film consumption. As such, this book rejects the suggestion that the theatrical presen- tation of films will ultimately be replaced by online film consumption. While it must be acknowledged that significant changes to film viewing are being felt in certain countries, in other territories cinema atten- dance is in very good health. In this respect, one would be ill advised to claim that a wholesale global decline in theatrical film attendance is in evidence. When examined from a global perspective, the health of the film industry is much more complex than might be inferred from the fre- quent news coverage suggesting an industry in crisis (Daily Mail,2011). For instance, in 2013, global box office revenue rose to $35.9 billion, an increase of 4% from 2012 (Motion Picture Association of America (MPAA), 2014, p. 2). Domestic (that is, US and Canadian) box office receipts also grew in 2012, but only by 1% (MPAA, 2014, p. 9). Nonethe- less, it must be acknowledged that this slight enlargement was due to a rise in ticket prices and not an increase in admissions. According to the MPAA, 1.34 billion cinema tickets were sold in 2013, down 1% from the 1.36 billion figure of 2012 (2014, p. 9). However, to put this decline in context, the MPAA also point out that ‘movie theatres continue to draw more people than theme parks and major U.S. sports combined’ (2014, p. 10); with a mere 371 million tickets for theme parks and only 125 million tickets for sports events sold in 2013. When these figures are compared with the 1.34 billion tickets sold for cinema admission in the same year, the social pastime of cinema-going might be considered in much more than reasonable health.